When it comes to online casinos and gambling, there are tons of different payment options available to individuals. From prepaid cards to credit cards, to bank wire transfers and even third-party payment processors. However, all of these payment options either have limitations due to country laws or are not readily available across the globe. With this said, Bitcoin and other cryptocurrencies like Ethereum, Litecoin, and BitcoinCash are becoming a popular alternative to making casino gambling transactions. The main reason for this is because these currencies are decentralized, meaning no one central authority manages them, they are completely digital in format and are run on a peer-to-peer network called a blockchain. This makes them secure, anonymous, and instantaneous.
How does bitcoin gambling work and is it convenient?
First and foremost, bitcoin gambling works similar to regular casino gambling in that you will still need to deposit and withdraw funds into the online casino. What makes this process different, is that opening up a wallet is a much different process than using say a third-party payment processor or your own bank account. The process goes as follows:
Research and decide on an electronic wallet that you feel safe using. There are tons out there, some being software only while others are strictly hardware. If you plan on making smaller transactions, go with a software-based If you want to make large transactions, then download an encrypted wallet to your computer. Popular wallets include Coinbase.com (an online exchange that has wallet storage), Blockchain.info (an online wallet), Electrum.org (software wallet), Ledgerwallet.com or Trezor.io (hardware wallets), and a Paper Wallet (bitcoinpaperwallet.com) which is a document that has the information needed to generate your bitcoin keys which you can then scan and put into a software wallet. A paper wallet is the most secure as it is stored completely offline.Decide on a secure and reputable bitcoin casino of your choosing. Make sure to read the fine print on the deposit and withdrawal options. Most bitcoin casinos will let you deposit with bitcoin and the casino will exchange it into regular currency funds (USD, GBP, CAD, etc) but when you go to withdraw, you may have to withdraw the funds as USD, CAD, GBP instead of as bitcoins. If you want to turn this money back into bitcoins, then you will need to use an exchange to buy the cryptocurrency of your choice and deposit them into your cryptocurrency wallet.Fund your wallet either with your bank account or buy the bitcoins from someone else who will then transfer them to you.When you go to deposit the bitcoins into your bitcoin casino, you will need to copy and paste the string that gets generated; this string allows you to determine the amount you want to transfer from your wallet to the casino. If you transfer a small amount, the transaction will be instantaneous but if you deposit a larger amount, it may need to be verified and confirmed through the blockchain a few times, which will mean that you may need to wait.
In terms of convenience, once you understand how to use your wallet, buy bitcoins, and make transactions, it’s actually very easy to use the bitcoins to gamble. Here is a video tutorial on how to make deposits with bitcoins:
The major advantages to using bitcoin are that there are never any chargebacks, your financial information and personal information are never available to anyone and all deposits and withdrawals are basically instantaneous which is a huge plus on regular withdrawals which usually take up to three days to process. Also, bitcoins are not taxable which means you will not get hit with any type of fees for the transactions. Plus, you may find that the house edge for bitcoin casinos is generally a lot lower than regular online casinos due to how new and how volatile the digital currency is.
The most popular exchanges and wallets by device
If you are located in Europe, one of the most popular wallets is Cubits.com as it is an all-inclusive platform that allows users to buy, sell, and even accept bitcoin into their own personal wallets. What makes Cubits so popular is that accepts what is known as a fiat currency, which is a legal tender that is not backed by physical coins, making it easy for users to deposit these 17 supported currencies into their Bitcoin wallets. In addition to this, Cubits has flexible merchants that accept Bitcoins and work with other financial providers like credit card companies, OKPay.com, and Rapid Transfer by skrill.com.
Other exchanges include CEX.IO which allows you to buy and sell Bitcoins via bank transfer or Visa and Mastercard; Kraken.com which is operating out of Canada and allows you to buy, sell and trade both Bitcoin and Ethereum; and CoinMama.com which is a simple platform that allows you to buy or sell Bitcoins after a quick and easy verification process (upload photo ID). CoinMama accepts all major credit cards and even accepts some cash services for buying Bitcoin.
For IOS device users, the most popular wallet is Breadwallet (breadapp.com) due to its simplistic nature, easy to understand interface, and security features. All you need to do is download it from the Apple App Store, choose a passcode for the app and that’s it. It is the first decentralized IOS bitcoin wallet that works as a standalone application so if it were ever to shut down, all wallet values can be restored easily.
Finally, for avid desktop users, the most popular wallets are Electrum.org and Exodus.io. Now Electrum is really good for individuals who want to use command lines to generate an interface that works for them and for those who want a two-factor authentication system. It is considered a multi-platform wallet and does support hardware wallets like Trezor, Ledger, and Keepkey.com. On the other hand, Exodus is great for those who have multi-asset wallets as this particular wallet allows you to store many different cryptocurrencies like Litecoin, Bitcoin, Ethereum, Dash, and so on. It also uses ShapeShift.io which gives you a seamless exchange interface. You may also track the value of your entire portfolio with live charts and even personalize the theme of your wallet.
Current caveats around gambling with cryptocurrencies
One of the major disadvantages that all bitcoin casino gamblers need to be aware of is the fact that because bitcoin is not regulated by a central authority, online casinos do not need a license to accept it as a payment option. This means that there is no jurisdiction over bitcoin casinos and bitcoin gambling, making it even more important that you only play at reputable casinos.
Another thing to be aware of is that bitcoin is volatile. Unlike regular currencies, the exchange rate can decrease and increase rapidly, so knowing when to deposit and withdraw becomes a lot more important. For instance, if you won a large amount of money at a bitcoin casino and decide to not withdraw the funds right away, you may be looking at a value loss if the market decreases suddenly.
Online casinos accepting bitcoin for gambling
Although cryptocurrencies are relatively new on the market, there are quite a few online casinos that do accept them as a deposit and withdrawal form. It is important though, that when deciding to play at an online casino with the intention of using cryptocurrencies for deposit and withdrawal, that you check which cryptocurrency methods are accepted. According to the latest study by Canadian analysts at Online CasinoValley some popular bitcoin casino options include:
onlyCasinomoons, Box 24 Casinos, Black Diamond, Spartans Slots, Fair Go Deposits
WithdrawalsPlayAmo, Bob Casino, Betchan, Bitstarz, Bovada, Café Casino, Ignition, Slots LV, Bodog, Uptown Aces, Miami Club, Red Stag
It is important to note that on a lot of the above casinos, they accept bitcoin but it will be through either Cubit which is an all-inclusive bitcoin buy and sell platform, or through one of the exchanges associated with the official bitcoin website.
Cryptocurrencies that are popular as a payment option
With so many cryptocurrencies to choose from, it can be hard to know which one to go with. Here are some of the popular choices that individuals use to do their online gambling.
Ethereum: the whole system behind Ether (ETH), a cryptocurrency that uses Smart Contract to verify and strengthen contracts. Meaning it is more secure and private than Bitcoin and does not require registration to play in most Ethereum casinos. It has no fees and its transaction times are minimal due to the blockchain technology. In terms of casino gambling, Ethereum also halves the distribution of tokens each year, meaning that their future within the gambling world will be much longer than other digital currencies.Litecoin: the main advantage of using this currency is that it is one of the fastest cryptocurrencies when it comes to transactions as it reads and confirms four times as fast as bitcoin. However, it uses a different algorithm than bitcoin that is more complicated, which requires more money to acquire.Bitcoin: there are plenty of online casinos that accept bitcoin, plus there are tons of sites that even offer bonuses for initial deposits. In addition, it is widely accepted around the world.Dogecoin: these coins have a block reading speed that is faster than Litecoins, which makes them incredibly quick and easy to use, send, and transfer. The only disadvantage is that it was created as a joke, so it is not necessarily as widely accepted as other currencies.Dash: has one major advantage is that it is completely anonymous.Novacoin: if you are familiar with Litecoin, then switching to or using Novacoin will be extremely easy as it has a similar monetary value as the former. The disadvantage is that there aren’t many casinos that accept it.Bitcoincash: is basically bitcoin only with a higher rate of speed at which it is processed due to the bigger blocks. It is just as private and secure as regular bitcoin.
The main advantages to using any of the above cryptocurrencies for online gambling purposes is that they are private, secure, and have fast transaction times. You can also exchange them between one another, you can store them in multiple wallets and they require no personal information/financial information to use. The disadvantage of using them for gambling purposes is that cryptocurrencies are decentralized, meaning casinos are not regulated in their cryptocurrency transactions. This means that it is up to you to find a reputable Bitcoin casino that, because once the transactions are complete, you cannot reverse them. Finally, the last disadvantage to using cryptocurrency for online gambling is that the market is very volatile, meaning you have an increased chance of losing a lot of monetary value if you cash out at the wrong time.
What is Bitcoin and how is it defined?
In order to understand how to use bitcoins for gambling purposes, we first need to understand how the network works, what the transactional properties are, and what the definition terms mean. To put it simply, bitcoin and other cryptocurrencies are considered digital cash or currency which use encryption techniques that control both the creation and verification of funds. The blockchain is the technology that allows cryptocurrency to exist and be exchanged from one individual to another; it is essentially an online ledger that keeps track of all of the digital currency transactions. In order to understand digital currency better, here are the properties that make it unique:
It has a controlled supply of 21 million tokens. Meaning that within the digital code of the currency, there is a finite supply variable. This ensures that the monetary supply of the currency will always be calculable and known.It does not work off of debt and is not considered debt. The monetary supply of it cannot be manipulated through inflation or deflation as there is no central authority that resides over it. Unlike your bank account, which acts as an IOU system, cryptocurrencies are valued like physical coins in that they only represent themselves and their value; they are not created by debt.All transactions, after they are confirmed, are irreversible.It is not necessarily possible to connect an individual’s real-world identity to the bitcoin address that they use. The addresses or wallets that are used to store the cryptocurrencies are a random chain of thirty characters that have no physical address connected to them.The network you exchange them on is global, ensuring that no physical location hinders the transaction. This ensures that almost all transactions are instantaneous and are confirmed swiftly.The digital funds are locked into a cryptography system with a public key, meaning only an owner who has a private key can send the currency. This ensures that all currency is secure.You do not need to have permission to use bitcoin or cryptocurrencies. You get your wallet for free and then you can send and receive at will.
Now that we have a better understanding of what defines bitcoins and other cryptocurrencies, how it is used with online casinos and gambling, and how it is a convenient option for such purposes, we can make the right choice.
In our opinion, this choice should be – bitcoin. Industry experts, including CasinoValley.ca, are certain that online casinos bitcoin casinos are growing in number fast because of how convenient this deposit method is. Convenience will always win over any other feature. It is the driving force of progress. Additionally, bitcoin is by far the most accepted cryptocurrency worldwide.